By Naishtat, Maxey H.B. No. 1196
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the provision of benefits designed to move AFDC
1-3 recipients to independence and self-sufficiency.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 ARTICLE 1. AID TO FAMILIES WITH DEPENDENT CHILDREN; TRANSITION TO
1-6 SUCCESS PROGRAM; AGREEMENT FOR SUCCESS
1-7 SECTION 1.01; AID TO FAMILIES WITH DEPENDENT CHILDREN.
1-8 Section 31.001, Human Resources Code, is amended to read as
1-9 follows:
1-10 Sec. 31.001. AID TO FAMILIES WITH DEPENDENT CHILDREN
1-11 (a) The department shall provide financial assistance and services
1-12 to families with dependent children in accordance with the
1-13 provisions of this chapter.
1-14 (b) The department shall provide assistance to families
1-15 designed to support a transition from public assistance to
1-16 successful employment and self sufficiency.
1-17 (c) The Aid to Families with Dependent Children Program
1-18 (AFDC) shall therefore also be known as the Transition to Success
1-19 Program (TSP).
1-20 SECTION 1.02. TRANSITION TO SUCCESS PROGRAM; AGREEMENT FOR
1-21 SUCCESS. Section 31.032(a), Human Resources Code, is amended to
1-22 read:
1-23 (a)(1) On receipt of an application for assistance
2-1 authorized by this chapter, the department shall investigate and
2-2 record the applicant's circumstances in order to ascertain the
2-3 facts supporting the application and to obtain other information it
2-4 may require. The investigation must include an assessment of
2-5 whether the applicant needs services in addition to financial
2-6 assistance, to make the transition to success. The assessment must
2-7 include consideration of the need for: assistance with job search,
2-8 on-the-job training, completion of elementary or secondary
2-9 schooling (including attainment of functional literacy, attainment
2-10 of the general equivalency diploma, or continuation to graduation
2-11 from a high school), post-secondary education, alternative work
2-12 experience, self-initiated education or training, child care, and
2-13 transportation services.
2-14 (2) The assistance to be provided, pursuant to
2-15 paragraph (b) of this section, must include the services identified
2-16 as needed through the assessment required by subsection (a)(1), in
2-17 addition to the financial assistance to be provided to the family
2-18 based on the family's income and resources.
2-19 (3) The notification of final action, required by
2-20 subsection (c), must include tendering to the applicant of an
2-21 Agreement for Success. The Agreement for Success must specify
2-22 those services, found to be needed pursuant to subsection (a)(1),
2-23 and the financial assistance to be provided to the family based on
2-24 the family's income and resources. The Agreement for Success must
2-25 set forth the progress required of the applicant, and a definition,
3-1 particular to the applicant, of success.
3-2 (4) It is a condition of eligibility for financial
3-3 assistance under the Transition to Success program that the
3-4 applicant for assistance undertake in good faith to receive all
3-5 services provided by the department pursuant to the assessment
3-6 conducted under section 31.032(a)(1), and to make the progress
3-7 required by the Agreement for Success. In consideration of said
3-8 undertaking by the applicant, the department must provide said
3-9 services to the applicant, and such financial assistance as
3-10 determined based on the family's income and resources.
3-11 (5) In the notification to the applicant of its final
3-12 action, required by section 31.032(c), the department must notify
3-13 the applicant that the department will engage in conciliation, if
3-14 requested by the applicant, if the applicant is dissatisfied with
3-15 the terms of the Agreement for Success tendered as part of the
3-16 final action, or if the applicant disagrees with a determination
3-17 that the applicant has not made good faith efforts to progress to
3-18 success as required by the Agreement for Success. A request by the
3-19 applicant for said conciliation must be received by the department
3-20 within 12 days of the date of the notice of final action, unless
3-21 the department finds there is good cause to accept a later request
3-22 for conciliation as timely. A timely request for conciliation
3-23 tolls the time within which an applicant must request a fair
3-24 hearing. A request for conciliation is not a prerequisite for a
3-25 fair hearing. A fair hearing may be requested if the applicant is
4-1 dissatisfied with the result of conciliation.
4-2 ARTICLE 2. EMERGENCY ASSISTANCE
4-3 SECTION 2.01. EMERGENCY ASSISTANCE FOR FAMILIES TO AVERT
4-4 ENROLLMENT IN AFDC. The department shall develop an Emergency
4-5 Assistance Program as authorized by Title IV-A of the Social
4-6 Security Act. This program shall be designed to provide cash
4-7 assistance to families at risk of becoming dependent on AFDC. The
4-8 department shall establish by rule a process for determining which
4-9 families should be eligible for this program. The family's work
4-10 history and need for short-term assistance should be considered.
4-11 The department shall also establish a process by which families
4-12 receiving cash assistance under the Emergency Assistance program,
4-13 who subsequently enter AFDC despite this assistance, pay back the
4-14 amount of the emergency cash assistance. This repayment should be
4-15 in monthly installments never to exceed 10% of the family's monthly
4-16 grant under AFDC. The department shall also make provisions for a
4-17 waiver of the repayment for good cause such as continued hardship
4-18 or deprivation of the children in the household. The department
4-19 should first test the Emergency Assistance concept in
4-20 high-employment areas where alternatives to AFDC may exist.
4-21 ARTICLE 3. FILL-THE-GAP BUDGETING; TRANSITIONAL BENEFITS
4-22 SECTION 3.01 FILL-THE-GAP BUDGETING. Section 31.003, Human
4-23 Resources Code, is amended by adding subsection (d) as follows:
4-24 (d) The department shall develop a demonstration project for
4-25 AFDC designed to support work by gradually lowering benefit amounts
5-1 as recipients enter full-time employment. This demonstration
5-2 project shall:
5-3 (1) utilize a budget method known as fill-the-gap
5-4 budgeting in determining graduated benefits for working clients;
5-5 (2) design the budgeting mechanism to allow families
5-6 to reach a reasonable level of self-sufficiency before the loss of
5-7 all benefits;
5-8 (3) implement this demonstration project for a subset
5-9 of AFDC clients large enough to determine the impact of this type
5-10 of benefit structure in supporting client transition to work and
5-11 independence; and
5-12 (4) implement this demonstration project in one or
5-13 more areas of the state characterized by average or better
5-14 unemployment rates and existing job training programs that have
5-15 demonstrated success in moving AFDC recipients to employment.
5-16 SECTION 3.02 TRANSITIONAL BENEFITS. The department shall
5-17 establish a demonstration project designed to extend medical and
5-18 child care benefits to AFDC families who become ineligible for cash
5-19 assistance due to income from employment or loss of earned income
5-20 disregards. This demonstration project shall extend transitional
5-21 medical and child care benefits to 24 months from the time of AFDC
5-22 ineligibility due to employment or loss of earned income
5-23 disregards. The department shall establish income levels at which
5-24 these households become ineligible for transitional services. For
5-25 child care benefits, the department may establish a sliding fee
6-1 scale for clients to pay part of the cost of child care benefits.
6-2 This fee scale shall be designed to gradually increase the amount
6-3 paid by the client over time and as their income increases. This
6-4 demonstration project should be coordinated with the demonstration
6-5 project described in Section 3.01 of this Act.
6-6 ARTICLE 4. RESOURCE LIMITS
6-7 SECTION 4.01. TRANSITION TO SUCCESS -- RESOURCE LIMITS.
6-8 Subchapter A, Chapter 31, Human Resources Code, is amended by
6-9 adding Sections 31.032(d) and 31.032(e) to read as follows:
6-10 (d) The resource limits under the "Aid to Families with
6-11 Dependent Children Program" (AFDC), also known as the "Transition
6-12 to Success Program", shall include a general resource exclusion of
6-13 $2000 (except that if the household has a member who is disabled or
6-14 has a member sixty (60) years of age or older, the limit is $3000).
6-15 (e) The resource limits under the "Aid to Families with
6-16 Dependent Children Program" (AFDC), also known as the "Transition
6-17 to Success Program", shall exclude ownership interest in one
6-18 automobile of up to $4,550 in fair market value, adjusted to $4,600
6-19 beginning October 1, 1995, and to $5,000, beginning October 1,
6-20 1996, and thereafter in accordance with the new car component of
6-21 the Consumer Price Index for All Urban Consumers published by the
6-22 federal Bureau of Labor Statistics.
6-23 ARTICLE 5. TRANSITION TO SUCCESS ACCOUNTS
6-24 SECTION 5.01 ESTABLISHMENT OF INDIVIDUAL TRANSITION TO
6-25 SUCCESS ACCOUNTS. (a) The department shall establish a
7-1 demonstration project designed to encourage AFDC recipients to save
7-2 money for specific investments that can help the transition to
7-3 self-sufficiency and success. This project shall establish
7-4 interest bearing accounts to be known as Transition to Success
7-5 Accounts which would be maintained by the state treasury. The
7-6 assets or interest income from the Transition to Success Accounts
7-7 shall not be countable as income or assets in the determination of
7-8 financial eligibility for AFDC and other benefits as outlined in
7-9 this Act. The department shall establish:
7-10 (1) the initial number of clients to be included in
7-11 this demonstration project;
7-12 (2) the allowable purposes for which the account
7-13 assets can be expended. Allowable purposes may include:
7-14 (A) self-employment enterprises, education, home
7-15 ownership, major home repair, or expenses related to moving to a
7-16 new residence. etc.;
7-17 (3) the maximum allowable amount of asset accumulated
7-18 in these accounts; and
7-19 (4) other appropriate guidelines
7-20 ARTICLE 6. INVESTMENTS IN TWO PARENT FAMILIES
7-21 Sec 6.01 AFDC UNEMPLOYED PARENT PROGRAM. Subchapter A,
7-22 Chapter 31, Human Resources Code, is amended by adding Section
7-23 31.014 to read as follows:
7-24 Section 31.014. AFDC UNEMPLOYED PARENT PROGRAM. (a) The
7-25 department shall provide financial assistance (AFDC) and related
8-1 job training, educational services, and support services, in
8-2 accordance with department rules currently applied to single-parent
8-3 families, to two-parent families without regard to:
8-4 (1) the number of hours worked per month by the
8-5 primary wage earner; or
8-6 (2) the work history of the primary wage earner.
8-7 (b) AFDC assistance to two-parent families shall begin upon
8-8 eligibility determination and shall continue under the above
8-9 guidelines until the date on which the net income of the assistance
8-10 unit exceeds AFDC income eligibility criteria.
8-11 (c) The department shall establish rules for the
8-12 implementation of the provisions of this section. The department
8-13 my begin implementation of this section in one or more specific
8-14 counties and/or with a specific number of families. Statewide
8-15 implementation should be complete by September 1, 1997.
8-16 ARTICLE 7. EDUCATION AND JOB TRAINING; ASSESSMENT; IMPLEMENTATION
8-17 SECTION 7.01 INTENT. The State of Texas recognizes that:
8-18 (a) participation in education and training efforts leads to
8-19 successful transitions to independence by AFDC families;
8-20 (b) a substantial share of Texas AFDC caretakers lack basic
8-21 educational skills to perform well and earn sufficient incomes for
8-22 their families;
8-23 (c) a substantial share of Texas AFDC caretakers have poor
8-24 work histories comprised of sporadic work participation often at or
8-25 below federal minimum wage; and that
9-1 (d) proper assessment and screening are essential to
9-2 devising and providing the most appropriate and effective education
9-3 and training for caretakers.
9-4 SECTION 7.02. ASSESSMENT AND IMPLEMENTATION OF EDUCATION AND
9-5 JOB TRAINING
9-6 Section 31.006, of the Human Resources Code, is amended by
9-7 adding the following sections:
9-8 (d) the department shall develop a two stage screening and
9-9 assessment process for determining what types of education,
9-10 training and other supportive services are necessary to assist AFDC
9-11 families in the transition to success. The screening will be as
9-12 follows:
9-13 (1) Initial Screening. The department should
9-14 initially screen all AFDC caretakers at application for the
9-15 provision of benefits based on their self-reported education level,
9-16 their work experience, and other barriers to participation and
9-17 employment.
9-18 (2) In-depth Assessment. The Department should
9-19 subsequently perform more in-depth assessments only on those
9-20 caretakers who report having at least an 8th grade education, using
9-21 a standardized testing instrument and including questions designed
9-22 to elicit more detailed information about the amount and quality of
9-23 previous work experience and any other barriers to participation
9-24 and employment.
9-25 (e) The department shall develop a partnership program with
10-1 private sector employers and industry associations or groups. The
10-2 purpose of this program should be to develop model education and
10-3 training programs designed to identify current and future economic
10-4 and employment trends and to design programs to prepare AFDC
10-5 recipients with the skills necessary to meet the needs of employers
10-6 and changing economic and employment sectors. To the extent
10-7 possible, training programs should be developed with employer and
10-8 industry participation, ranging from front end design, curriculum
10-9 specifications and elements, to job placement. At a minimum the
10-10 program should include the following components:
10-11 (1) At the state level, an ongoing workgroup of
10-12 department representatives and employers and industry associations
10-13 or groups should assist the department in designing statewide
10-14 guidelines for education, training and other employment services.
10-15 (2) At the local level, regional representatives
10-16 should meet with employers and industry associations or groups to
10-17 identify regional economic and employment trends with the goal of
10-18 designing local job training and placement programs targeted to
10-19 specific employment opportunities.
10-20 (f) The department should develop two specific demonstration
10-21 projects related to job training:
10-22 (1) Texas State Technical College Tuition/Fees Waiver
10-23 Project. Subject to available funds, the department shall enter
10-24 into an agreement with the Texas State Technical College to operate
10-25 a full waiver of all tuition and fees for a limited number of AFDC
11-1 caretakers at each TSTC campus for a project of three years
11-2 duration.
11-3 (2) Combining Education, Training, Work and Parenting.
11-4 Subject to available funds the department shall select a subset of
11-5 Texas counties and AFDC recipients in those counties to combine
11-6 education, part-time work and ongoing parenting classes for
11-7 caretaker recipients. Parenting classes could either be held
11-8 during the day as part of education participation hours, or in the
11-9 evenings as an additional component. One site in the demonstration
11-10 should educate, train and employ caretakers in NAEYC-accredited
11-11 child care centers.
11-12 ARTICLE 8. REPORTS TO THE LEGISLATURE; WAIVERS; FUNDING FOR
11-13 DEMONSTRATION PROJECTS AND TRANSITIONAL SERVICES; EFFECTIVE DATE;
11-14 EMERGENCY
11-15 SECTION 8.01. WAIVERS. If before implementing any provision
11-16 of this Act, the Texas Department of Human Services or other agency
11-17 determines that a waiver or authorization from a federal agency is
11-18 necessary for implementation of that provision, the department
11-19 shall request the waiver and may delay implementing that provision
11-20 until the waiver or authorization is granted.
11-21 SECTION 8.02. REPORTS TO THE LEGISLATURE The department
11-22 shall report to the 75th legislature on all demonstration projects
11-23 outlined in this Act. If, due to a delay in implementation of said
11-24 demonstration projects because of pending federal approval, a
11-25 project has been implemented for less than 12 months, the
12-1 department will report to the 76th legislature. Reports on
12-2 demonstration projects shall include a rigorous assessment of the
12-3 effectiveness of the project in supporting client transition to
12-4 independence and success. The reports shall also include, to the
12-5 extent possible, an assessment of reduced recidivism to the AFDC
12-6 program as a result of these projects. Implementation costs and
12-7 savings from averted AFDC dependence should also be provided.
12-8 SECTION 8.03. FUNDING FOR DEMONSTRATION PROJECTS AND
12-9 TRANSITIONAL SERVICES. The legislature should appropriate adequate
12-10 funds for the implementation of the demonstration projects and
12-11 transitional benefits outlined in this Act and to ensure the
12-12 successful transition of AFDC families to independence and success.
12-13 The department shall seek to maximize the utilization of existing
12-14 funding, all available federal matching funds and local resources
12-15 to implement the projects outlined in this Act. If, during the
12-16 74th legislative session, any other changes to the AFDC program and
12-17 related services result in savings to the general revenue fund,
12-18 those savings shall be reinvested in the transitional services and
12-19 demonstration projects outlined in this Act.
12-20 SECTION 8.04. EFFECTIVE DATE. Except as otherwise provided
12-21 by this Act, this Act takes effect September 1, 1995.
12-22 SECTION 8.05. EMERGENCY. The importance of this legislation
12-23 and the crowded condition of the calendars in both houses create an
12-24 emergency and an imperative public necessity that the
12-25 constitutional rule requiring bills to be read on three several
13-1 days in each house be suspended, and this rule is hereby suspended.